How the Stock Exchange Market Operates is discussed in this article. We hope you find the information here helpful to your stock exchange business.
The term Stock Exchange is an organized corporation that makes available trading facilities for buying and selling shares and other securities. It is commonly used in businesses to place advertisements regarding goods.
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How the Stock Exchange Market Operates
Stock refers to a resource that is preserved for future use.
Even among young people, it has gained popularity but most people still wonder what the term stock exchange really connotes and how people get involved in the stock exchange.
It will surprise you that there are several people and different companies involved in trading on the stock exchange market. This article will be forced on the people involved in the stock market such people may be buyers, sellers, or even agents.
Buyers of securities are mainly involved in the stock exchange. These are people or organizations that have the intention of buying or purchasing stock and securities from the sellers.
The financial instruments are purchased at a fixed price which is placed by the stock exchange market and this is determined by the rules and regulations of the security and exchange commission.
Also, just as we have the buyers of securities, we also have the sellers of securities. They are those agents who are not just involved in the stock exchange but are the owners of securities.
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These sellers of securities are individuals or organizations who own stock, bonds, and other securities. In business, the sellers of securities are willing to give out these securities in exchange for money on the stock exchange.
When sales are carried out at a fixed price as determined by the security and exchange commission or by the stock exchange market at a given time.
It is important to know the price is not usually fixed for a long period of time but varies or is not stable. If the price declines, it favors the buyers of securities, and if the price increases, it will be in favor of the buyers of securities.
One vital thing in the stock exchange market is that the sellers and buyers do not take part directly in trading securities in the stock exchange market.
In most cases, there is an intermediate person that the sellers and buyers could act through usually called an appointed representative.
This representative can not be any company or organization but must be a company duly registered with the governing body of the stock exchange.
There act as representative BT creating a link between sellers and buyers of securities. The representative is often paid for the services rendered in line with the stipulated guidelines.
Conclusively, to be able to buy and sell a security on the stock exchange market, it must be listed and approved by the stock exchange council which is the governing body of the stock exchange.
This is done to regulate the sales and purchase of stock exchanges. The Nigerian Stock Exchange has its headquarters in Lagos.
The body saddled with the responsibility of regulating the Nigerian stock exchange popularly called the Security and Exchange Commission (SEC).